Tax Question Edited

[elyse12a]

In 2023, my income: $45,626. 2024 income: $40,136. In 2023, I claimed $584 in tax credits, but after finishing the Federal portion of my return for 2024, I've claimed 0 tax credits. Could I have missed claiming something? Where on my 2023 return can I see what the $584 consisted of and why wouldn't I have received it this year? In 2023, I received a Federal refund of $761. For 2024, I owe $267 to Federal. Something seems off.

[LindaS5247]

You can compare your two tax returns to determine if any tax credits were missed. The easiest way to see your tax credits on your tax return is by viewing your  Schedule 3, Annual Credits and Payments. (see screenshot below).  If you compare your Schedule 3 from 2023 to 2024, you will likely be able to determine the difference. There was little change to tax credits from 2023 to 2024.

If you answered all of your prompts in TurboTax especially under the  Deductions & Credits sections of the TurboTax program, you likely did not miss any.

If your income was the a little more, the same or even a little less, the rate at which your income is taxed could have changed when income ranges for the 7 federal tax brackets were adjusted for tax year 2024. These tax brackets increased by about 5.4% from 2023 because of inflation.

The main tax credits are listed below:

• Child Tax Credit (CTC). For filers who are also caregivers for children, the CTC provides up to $2,000 for each child or dependent under the age of 17. You may receive a full or partial credit depending on your income. The CTC itself is non-refundable. However, some filers may qualify for a partial refund of $1,500 per child with the Additional Child Tax Credit (ACTC).
• Earned Income Tax Credit (EITC). If you're a low or moderate earner, you may be eligible for the refundable EITC. With the EITC, you can generally expect to receive a minimum credit of $600, but the amount may be higher if you have qualifying dependents.
• American Opportunity Tax Credit (AOTC). If you're a student or the parent of a dependent student who has not completed the first four years of post-secondary education, you may benefit from this credit. You can receive up to $2,500 for qualified educational costs, such as tuition and textbooks. The AOTC can only be claimed once.
• Student Loan Interest Deduction. With this deduction, you can claim any federal or private student loan interest you paid during the year, up to a maximum of $2,500.
• IRA and 401(k) Deductions. Depending on your income and other factors, contributions to traditional IRAs and traditional 401(k)s may be fully or partially deductible, up to the annual IRS limit.
• Savers Tax Credit (STC). If you contributed to a qualifying retirement account like an IRA or 401(k), you may be eligible for this non-refundable credit alongside other relevant deductions. Depending on your adjusted gross income and filing status, you may receive up to $1,000.
• EV Tax Credit. Some electric vehicles (EVs) and fuel-cell electric vehicles (FCEVs) are eligible for a non-refundable clean vehicle tax credit. If you purchase a qualified EV or FCEV that meets certain manufacturing and quality standards, you may receive up to $7,500 for a new vehicle or $4,000 for a used vehicle.
• Residential Clean Energy Credit. This credit can help you recoup a percentage of funds spent on solar, wind, fuel cell, geothermal, and other renewable energy technologies at home.

Your Schedule 3 lists your main tax credits.  If you compare your Schedule 3 from 2023 to your Schedule 3 from 2024, you should be able to determine the difference in your tax credits.

Your tax credits are reported on line 20 of your Form 1040. These credits are listed on your Schedule 3.

Click here for "What Are Tax Credits?"

Click here for "The 5 Biggest Tax Credits You Might Qualify For"

[elyse12a]

On my Schedule 3 in 2023, part 2, line 9 (Net premium tax credit. Attach Form 8962)  lists the $584.  How do I figure out what that consists of and why I didn't receive the credit for 2024?  My income was $5,500 less in 2024 than in 2023.  From the list of "main tax credits" that you sent, the only on that would apply to me is the EITC.   

[LindaS5247]

The premium tax credit will come from your Form 1095-A, Health Insurance Marketplace Statement.  It is a refundable tax credit that will help you lower your insurance premium costs when you enroll in a health plan through the Health Insurance Marketplace or help you cover those costs later come tax time. 

Certain changes to your household income or family size may affect the amount of your premium tax credit.  These changes can alter your tax refund, or cause you to owe more tax.

When you enroll in coverage, the Health Insurance Marketplace estimates the amount of the premium tax credit you will be allowed. 

This estimate is based on the following:

• Your family composition
• Your household income
• Whether those you are enrolling are eligible for other non-Marketplace coverage

Based on that estimate from the Marketplace, you will have to choose to have all, some, or none of your "estimated credit" paid in advance directly to your insurance company on your behalf.

These "advance payments" of the premium tax credit will lower what you pay out-of-pocket for your monthly healthcare premiums.
 

If you choose to receive "advance payments" of the premium tax credit, you must report "certain life events" to the Marketplace through out the tax year. These are called "changes in circumstances".

If your household income goes up or the size of your household is smaller than you must report this to the Marketplace. Then the Marketplace will lower the amount of your advance credit payments. 

If you don't report the change and your advance credit payments are more than the premium tax credit you are allowed, you have to reduce your refund or increase the amount of tax you owe by all or a portion of the difference when you file your federal tax return.

These "changes in circumstances" can significantly affect your credit include:

• Lump-sum payments of Social Security and Social Security Disability benefits
• Lump-sum taxable distributions from an IRA or Retirement plan
• Debt forgiveness or cancellation
• Marriage or divorce
• Birth or adoption of a child
• Filing status changes
• Gaining or losing eligibility for employer or governmental health care coverage

If you had any of these changes, that may be the cause of the loss of your premium tax credit in 2024. 

If you have questions about your Premium Tax Credit (PTC) or Form 1095-A, you should contact your Marketplace directly. 

You can also call the IRS Healthcare Hotline for ACA questions at 800-919-0452.

Click here for "Questions and answers on the Premium Tax Credit"

Click here for "Premium Tax Credit: Claiming the credit and reconciling advance credit payments"